Eureka Savings Bank, based in La Salle, will merge with Wenona Bancorp Inc., the parent company of Wenona State Bank in Wenona.
Eureka Savings Bank announced Friday the two companies signed a definitive merger agreement. Under the agreement's terms, Eureka Savings Bank will acquire Wenona Bancorp in an all-cash transaction, which is expected to close in the first quarter of 2021. The transaction is subject to customary closing conditions, such as regulatory approval and approval by Wenona Bancorp shareholders.
The merger has been unanimously approved by the board of directors at each company.
Wenona State Bank had about $41 million in assets, $17 million in loans and $31 million in deposits as of June 30, according to a news release.
Eureka Savings Bank has locations in La Salle, Peru, Oglesby and Mendota.
"We are excited about this partnership, which introduces Eureka Savings Bank to the Marshall County community," said Eureka Savings Bank President and CEO John McCormick in a news release.
John Lauf, chairman of Wenona Bancorp, said the merger of the two banks is a positive opportunity for customers and employees.
"We are proud of our accomplishments and are confident that Eureka Savings Bank will continue the legacy of customer service we have built over the years," Lauf said.
Olsen Palmer LLC is serving as financial adviser to Eureka Savings Bank with Brown, Hay & Stephens LLP as legal adviser. Wipfli Corporate Finance Advisors LLC is representing Wenona Bancorp as financial adviser Howard & Howard Attorneys PLLC serving as legal adviser.